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Solana is well-positioned to drive the next iteration of the internet.
Crypto prices slumped in November. The fear and greed index has hovered between “fear” and “extreme fear” since the start of the month. The idea that any cryptocurrency could be about to break the internet may seem far fetched.
Image source: Getty Images.
But Web3 — and the crypto ecosystems that underpin it — could transform the internet as we know it. Web3 promises to shift the ownership of data to individuals rather than tech giants. If that next iteration of the internet comes, Solana‘s (SOL +0.55%) community, speed, and scalability mean it could play an important part.
Solana is building on its success
When Solana first launched, the crypto community was excited by its speed and low transaction costs. However, that enthusiasm was dampened by outages and technical difficulties. That’s something the team has addressed: Solana hasn’t had any incidents since February 2024, which builds credibility.
Today’s Change
(0.55%) $0.75
Current Price
$136.89
Key Data Points
Market Cap
$77B
Day’s Range
$135.57 – $139.71
52wk Range
$96.70 – $293.31
Volume
3.3B
Avg Vol
0
Gross Margin
0.00%
Dividend Yield
N/A
As a smart-contract crypto, Solana was one of several potential rivals to Ethereum (ETH +0.94%). At that time, it wasn’t clear which would come out on top. Today, Ethereum still dominates, but Solana is edging ahead. It is second only to Ethereum in terms of developers on its network and funds on its ecosystem, per Electric Capital and DefiLlama.
Applications like gaming, social media, and online payments will need to work as well as — if not better than — our existing internet to move on-chain. Here, Solana stands out again. Its blockchain is unusual in that it processes multiple transactions simultaneously.
Solana (and Web3) still have to deliver
Solana is well-placed to dominate if Web3 gains traction. However, Web3 has been around for over a decade, and we’ve yet to see a real shift in internet usage. That may happen with the growth of AI. The decentralized identities that are key to Web3 could solve some of AI’s trust issues.
Even so, it isn’t guaranteed. Cryptocurrencies are high-risk investments that should only make up a small percentage of your portfolio. Solana’s technology has a lot of potential, but broad-scale mainstream adoption is not yet here.
Emma Newbery has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.